Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.
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Industry, Sector and Symbol
Industry Investors, not elsewhere classified
Sub-IndustryAsset Management & Custody Banks
SectorFinance
Phone212-750-7300
Debt
Price-To-Earnings
Sales & Book Value
Annual Sales$1.34 billion
Profitability
Miscellaneous
EmployeesN/A
Next Earnings Date10/30/2019 (Estimated)
OptionableOptionable
Ares Capital (NASDAQ:ARCC) Frequently Asked Questions
What is Ares Capital's stock symbol?
Ares Capital trades on the NASDAQ under the ticker symbol "ARCC."
How often does Ares Capital pay dividends? What is the dividend yield for Ares Capital?
Ares Capital announced a special dividend on Wednesday, May 1st. Stockholders of record on Monday, September 16th will be paid a dividend of $0.02 per share on Monday, September 30th. This represents a dividend yield of 9.04%. The ex-dividend date of this dividend is Friday, September 13th. View Ares Capital's Dividend History.
How were Ares Capital's earnings last quarter?
Ares Capital Co. (NASDAQ:ARCC) issued its quarterly earnings data on Tuesday, July, 30th. The investment management company reported $0.49 earnings per share (EPS) for the quarter, beating the Zacks' consensus estimate of $0.44 by $0.05. The investment management company earned $382 million during the quarter, compared to analysts' expectations of $363.60 million. Ares Capital had a return on equity of 10.72% and a net margin of 53.81%. The firm's revenue was up 14.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.60 EPS. View Ares Capital's Earnings History.
When is Ares Capital's next earnings date?
What price target have analysts set for ARCC?
7 brokerages have issued 12 month price objectives for Ares Capital's stock. Their predictions range from $18.00 to $20.00. On average, they expect Ares Capital's share price to reach $19.50 in the next year. This suggests a possible upside of 3.2% from the stock's current price. View Analyst Price Targets for Ares Capital.
What is the consensus analysts' recommendation for Ares Capital?
7 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Ares Capital in the last year. There are currently 1 hold rating and 6 buy ratings for the stock, resulting in a consensus recommendation of "Buy." View Analyst Ratings for Ares Capital.
What are Wall Street analysts saying about Ares Capital stock?
Here are some recent quotes from research analysts about Ares Capital stock:
- 1. According to Zacks Investment Research, "Shares of Ares Capital have outperformed the industry over the past six months. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Its second-quarter 2019 results benefited from improvement in total investment income and solid portfolio activity, partly offset by higher costs. The company's investment income growth is expected to continue in the near term, driven by regulatory changes and rise in demand for customized financing. Moreover, rise in investment commitments will likely continue to support revenues. However, continuously increasing expenses (mainly due to the company’s expansion strategy) are expected to hurt bottom-line growth to some extent in the near term. Moreover, the presence of high levels of debt remains a major concern for the company as it might hurt financials." (8/26/2019)
- 2. National Securities analysts commented, "▪ Ares had extremely robust originations during the 3/31/19 quarter with over $1.95 billion of gross commitments versus $1.35 billion of exits, bringing the total portfolio at fair value to $13.06 billion from $12.42 billion Q/Q.
▪ The strong portfolio growth for ARCC also drove a significant core NII/share beat of $0.48 versus our estimate of $0.42. Notably, the heavy origination volume drove capital structuring service fees of $45.0mm on the quarter compared to our estimate of $26.7mm. Through 4/24 ARCC had $183mm of commitments compared to exits and repayments of $747mm with a backlog of $1.1 billion and pipeline of $195mm.
▪ While a platform the size of Ares really only needs one large deal to close for a big increase in commitments, we do expect origination volume to slow Q/Q for the 6/30/19 quarter. As a result, we think structuring fees and earnings will come down a bit but still remain comfortably above the $0.42/share of total dividends (two cents per share supplemental and forty cents regular).
▪ Management reiterated that they expect Ares to benefit from any credit dislocation by means of winning market share from weaker market participants. We tend to agree with this sentiment and expect that ARCC’s underwriting will enable them to withstand a slowing economy or a general pickup in defaults, both of which we think will materialize through 2019.
▪ We are revising our 2019 core NII/share estimate to $1.83 from $1.75 and our 2020 core NII/share estimate to $1.80 from $1.78." (5/1/2019)
Has Ares Capital been receiving favorable news coverage?
News stories about ARCC stock have trended somewhat positive recently, InfoTrie Sentiment Analysis reports. InfoTrie ranks the sentiment of news coverage by analyzing more than six thousand news and blog sources in real-time. The firm ranks coverage of publicly-traded companies on a scale of negative five to positive five, with scores nearest to five being the most favorable. Ares Capital earned a coverage optimism score of 0.9 on InfoTrie's scale. They also assigned media stories about the investment management company a news buzz of 1.0 out of 10, indicating that recent news coverage is extremely unlikely to have an impact on the company's share price in the near future. View News Stories for Ares Capital.
Who are some of Ares Capital's key competitors?
Some companies that are related to Ares Capital include Prospect Capital (PSEC), TPG Specialty Lending (TSLX), New Mountain Finance (NMFC), Golub Capital BDC (GBDC), Pennantpark Floating Rate Capital (PFLT), PennantPark Investment (PNNT), Triplepoint Venture Growth BDC (TPVG), Gladstone Investment (GAIN), Capital Southwest (CSWC), Safeguard Scientifics (SFE), Stellus Capital Investment (SCM), Oaktree Strategic Income (OCSI), THL Credit (TCRD), Arlington Asset Investment (AI) and Allied Minds (ALLWF).
What other stocks do shareholders of Ares Capital own?
Who are Ares Capital's key executives?
Ares Capital's management team includes the folowing people:
- Mr. Michael J. Arougheti, Exec. VP & Co-Chairman (Age 47)
- Mr. Bennett Rosenthal, Co-Founder and Co-Chairman (Age 56)
- Mr. Robert Kipp DeVeer III, CEO & Director (Age 46)
- Mr. Mitchell S. Goldstein CPA, CPA, Co-Pres (Age 52)
- Mr. Michael Lewis Smith, Co-Pres (Age 48)
Who are Ares Capital's major shareholders?
Ares Capital's stock is owned by many different of institutional and retail investors. Top institutional investors include D. E. Shaw & Co. Inc. (1.30%), Confluence Investment Management LLC (1.17%), Wells Fargo & Company MN (1.07%), OMERS ADMINISTRATION Corp (0.81%), Vaughan Nelson Investment Management L.P. (0.63%) and UBS Group AG (0.62%). Company insiders that own Ares Capital stock include Bates Ann Torre, Daniel G Kelly, Jr, Eric B Siegel, Michael J Arougheti, Penelope F Roll, R Kipp Deveer, Steve Bartlett and Steven B Mckeever. View Institutional Ownership Trends for Ares Capital.
Which major investors are selling Ares Capital stock?
ARCC stock was sold by a variety of institutional investors in the last quarter, including Bruni J V & Co. Co., First Republic Investment Management Inc., Marshall Wace LLP, Canada Pension Plan Investment Board, PVG Asset Management Corp, Price T Rowe Associates Inc. MD, D. E. Shaw & Co. Inc. and LGT Capital Partners LTD.. View Insider Buying and Selling for Ares Capital.
Which major investors are buying Ares Capital stock?
ARCC stock was acquired by a variety of institutional investors in the last quarter, including Green Square Asset Management LLC, Vaughan Nelson Investment Management L.P., Sound Income Strategies LLC, LSV Asset Management, OMERS ADMINISTRATION Corp, UBS Group AG, Virtus ETF Advisers LLC and Allianz Asset Management GmbH. Company insiders that have bought Ares Capital stock in the last two years include Bates Ann Torre, Daniel G Kelly, Jr, Eric B Siegel, Michael J Arougheti, Penelope F Roll, R Kipp Deveer, Steve Bartlett and Steven B Mckeever. View Insider Buying and Selling for Ares Capital.
How do I buy shares of Ares Capital?
Shares of ARCC can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity and Charles Schwab.
What is Ares Capital's stock price today?
One share of ARCC stock can currently be purchased for approximately $18.89.
How big of a company is Ares Capital?
Ares Capital has a market capitalization of $8.06 billion and generates $1.34 billion in revenue each year. The investment management company earns $858 million in net income (profit) each year or $1.68 on an earnings per share basis. View Additional Information About Ares Capital.
What is Ares Capital's official website?
How can I contact Ares Capital?
Ares Capital's mailing address is 245 PARK AVENUE 44TH FLOOR, NEW YORK NY, 10167. The investment management company can be reached via phone at 212-750-7300 or via email at [email protected]
MarketBeat Community Rating for Ares Capital (NASDAQ ARCC)
MarketBeat's community ratings are surveys of what our community members think about Ares Capital and other stocks. Vote "Outperform" if you believe ARCC will outperform the S&P 500 over the long term. Vote "Underperform" if you believe ARCC will underperform the S&P 500 over the long term. You may vote once every thirty days.
